Credit card these days come with endless perks. Whether it’s reward points or miles, service providers go the extra mile to attract consumers. This is why if you use your card smartly, you can benefit greatly from these perks. A prime example being cashback credit cards.

Just as the name suggests, cashback credit cards give you money back each time you spend using the card. In Saudi Arabia a range of banks such as Emirates NBD, Bank Al Jazira and BSF, all have credit cards which give their customers the option to get cash back on their purchases.

But how do you select the right card and make the most out of it?

Ideally the benefit of your cash back card will be determined by how much money you spend using your credit card and the percentage cashback the card offers. For example, if you spend SR 10,000 and the card offers 1% cashback, then you earn SR 100. If you spend SR 3,500, you earn SR 105 with a 3% cashback card.

Choose smartly

A good place to start while comparing cashback cards in the market is ones with the highest percentage cashback rate. Even though this seems like an obvious place to start, banks may differ on their policies when it comes to offering cashback. For example, BSF offers 1% cashback when customers spend more than SR 250 on their card or earn 2500 of their reward points. Therefore check if there is a minimum spend or rewards/points requirement to get the promised cashback.

If you usually use your credit card during a vacation outside of Saudi Arabia, then select cards which offer cashback on not only local purchases but also international purchases.

Another factor to consider during selection is if you get cashback while buying from any outlets or selected outlets only. Some banks may provide a high percentage cashback but only from participating outlets. Therefore, it is important to check if you shop at all from these selected stores. Otherwise you will not be making enough returns on your card.

Use efficiently

To make the most out of your cash back card depends on how well you understand you’re spending habits and using that information to efficiently use your card. Take a look at places you usually use your card. Do you use it for daily expenses or big purchases? Do you usually buy groceries with your card or other retail items? Do you have any large expenses coming up where the cashback will be beneficial to you?

By considering such factors, you can make higher returns with cards who have affiliation at stores and supermarkets you shop at or on future, large purchases.

Another thing to consider when using your card is not to get carried away by the concept of cashback itself. Many people think that just because they are getting returns on their purchases, they should spend more. Spending more than you would have otherwise would take away from the benefits of owning a cashback card.

Aim to pay off your card in full each month or else you would be spending all your cashback returns, if not more on interest to the bank.

Cashback cards which are linked with a banks rewards scheme can be beneficial too. They give you the freedom to redeem your points in ways which suit you best. Therefore, according to a situation, you have the option to either use your reward points or get cashback.